Behavioral Aspects of IT Employees towards Problems and Prospects of Activity Based Costing (ABC)

  • Dr. N. Narsaiah
Keywords: Activity Based Costing, Information Technology, Behavioral Aspects, Implementation, Adoption


Activity Based Costing (ABC) is a new variant in cost management practices emerged in 1980’s, which caters to the needs of organizations in effective control and monitoring cost and better management of profitability. The success of ABC duly depends on articulation of implementation of ABC and the outcome of Activity Based Cost and Management (ABCM). Though employees experience a positive outcome, it is beyond doubt that they can support the ABC rather resisting the same. The main objective of this paper is to examine the perception of IT companies’ employees’ towards implementation of Activity-Based Costing(ABC). A normative list of benefits concerning the ability of ABC systems to redirect the behavior of individuals was abstracted from the interviews opinion and compared to the perceived benefits gathered from interviews with firm employees. This will permit IT Companies and provides relevant information that will enable them to make better decisions with regard to measure the successful implementation of ABC in IT Companies.


Download data is not yet available.


Blocher,E., B.Wong, & C.T.Mckittrick.(2002). Making bottom-up ABC work at Reichhold. Inc. Strategic Finance (April), pp. 51-55.

Demmy, S. & J. Talbott. (1998). Improve internal reporting with ABC and TOC. Management Accounting (November), pp. 18-20, 22 and 24. Available at:

Dodd, G. D. Lavelle, W. K., & Margolis, S. W. (2002). Driving improved profitability with activity- based costing. An Executive White Paper: Economy ABC print. Madison, pp. 1-8.

Emblemsvag, J. (2003). Life-cycle costing: using activity-based costing and monte carlo methods to manage future costs and risks. John Wiley & Sons.

Emblemsvag, J. (2004). Activity-based costing and economic profit: Why, what and how. Cost Management (July/August), pp. 38-46.

Everaert, P., G. Cleuren, & S. Hoozee. (2012). Using time -driven ABC to identify operational improvements: A case study in a university restaurant. Cost Management (March/April), pp. 41-48.

Johnson, S.D. (1998). The ABCs of the electric utility industry. Management Accounting (Novemebr), pp. 25-26, 28, 30-32.

Kaplan, R. S & R. Cooper. (1998). Cost & effect: Using integrated cost systems to drive profitability and performance. Bostan, MA: Harvard Business School Press.

King, A.M. (1991). The current status of activity-Based costing: An interview with Robin Cooper and Robert S. Kaplan. Management Accounting (September), pp. 22-26.

Kocalkulah, M. (2007). ABC implementation for the small service company, Cost Management (March/April), pp. 34-39.

Mitchell, F. (1994). A commentary on the application of activity-based costing. Management Accounting Research (September), pp. 261-277.

Pineno, C. J. (2012). Simulation of the weighting of balance scorecard metrics including sustainability and time-driven ABC based on the product life cycle. Management Accounting Quarterly (Winter), pp. 21-38.

Rafig, A. & Garg, A. (2002 a) Using Activity based costing to improve performance. Bank Accounting and Finance, 15(6), 4-5.

Roberts, M.W. & K.J. Silvester. (1996). Why ABC failed and how it may yet succeed. Journal of Cost Management (Winter), pp. 23-35.

Roztocki, N. & Needy, K. L. (1999a). Integrated activity based costing and economic value added in manufacturing. Engineering Management Journal, 11(2), 17-22.

Sergeant, A. (2017). Consolidated western wear retailers: Regression analysis to understand cost drivers in a purchasing department. IMA Educational Case Journal, 10(4), 1-3.

Tarr, J. D. (2001a). Activity based costing in the information age. The ACA Group. Newhall. Available at:

Turney, P.B.B. (1989). Using activity-based costing to achieve manufacturing excellence. Journal of Cost Management (Summer), pp. 22-31.

Turney, P.B.B. (1990). What is the scope of activity-based costing?. Journal of Cost Management, (Winter), pp 40-42.

Turney, P.B.B.(1990). Ten myths about implementing an activity-based costing system. Journal of Cost Management (Spring), pp. 24-32.

Turney, P. (1996). Activity based costing: The performance breakthrough. London, UK: Kogan Page.

Turney, P.B.B. (2010). Activity-based costing: An emerging foundation for performance management. Cost Management (July/August), pp. 33-42.

How to Cite
Dr. N. Narsaiah. (2019). Behavioral Aspects of IT Employees towards Problems and Prospects of Activity Based Costing (ABC). International Journal of Engineering and Management Research, 9(2), 190-205.